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Store Layout, Design & 
Visual Merchandising

Angela D’Auria Stanton, Ph.D.

“Shopper found dead in local 
store; cause of death – boredom”

Stanley Marcus, Chairman-Emeritus, Neiman Marcus

No other variable in the retailing mix influences the consumer’s initial 
perceptions of a bricks & mortar retailer as much as the store itself.

The store is “where the action is” and includes such minor details as 
the placement of the merchandise.

Objectives of the Store Environment

„

Get customers into the store (store image)

‰

Serves a critical role in the store selection process

‰

Important criteria include cleanliness, labeled prices, accurate and pleasant 

checkout clerks, and well-stocked shelves

‰

The store itself makes the most significant and last impression

„

Once they are inside the store, convert them into customers 

buying merchandise (space productivity)

‰

The more merchandise customers are exposed to that is presented in an 

orderly manner, the more they tend to buy

‰

Retailers focusing more attention on in-store marketing – marketing dollars 

spent in the store, in the form of store design, merchandise presentation, 

visual displays, and in-store promotions, should lead to greater sales and 

profits (bottom line: it is easier to get a consumer in your store to buy more 

merchandise than planned than to get a new consumer to come into your 

store)

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Objectives of Good Store Design

„

Design should:

‰

be consistent with image and strategy

‰

positively influence consumer behavior

‰

consider costs versus value

‰

be flexible

‰

recognize the needs of the disabled – The 
Americans with Disabilities Act

Types of Floor Space in Store

„

Back Room – receiving area, stockroom

‰

Department stores (50%)

‰

Small specialty and convenience stores (10%)

‰

General merchandise stores (15-20%)

„

Offices and Other Functional Space – employee break room, 

store offices, cash office, restrooms

„

Aisles, Service Areas and Other Non-Selling Areas

‰

Moving shoppers through the store, dressing rooms, layaway 

areas, service desks, customer service facilities

„

Merchandise Space

‰

Floor

‰

Wall

Store Layout (and Traffic Flow)

„

Conflicting objectives:

‰

Ease of finding merchandise versus varied and 
interesting layout

‰

Giving customers adequate space to shop versus 
use expensive space productively

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Grid (Straight) Design

• Best used in retail environments 
in which majority of customers 
shop the entire store

• Can be confusing and frustrating 
because it is difficult to see over 
the fixtures to other merchandise

• Should be employed carefully; 
forcing customers to back of large 
store may frustrate and cause 
them to look elsewhere

• Most familiar examples for 
supermarkets and drugstores

Curving/Loop (Racetrack) Design

• Major customer aisle(s) begins at 
entrance, loops through the store 
(usually in shape of circle, square 
or rectangle) and returns customer 
to front of store

• Exposes shoppers to the greatest 
possible amount of merchandise by 
encouraging browsing and cross-
shopping

Free-Flow Layout

Fixtures and 

merchandise grouped 
into free-flowing 
patterns on the sales 
floor – no defined 
traffic pattern

• Works best in small 
stores (under 5,000 
square feet) in which 
customers wish to 
browse

• Works best when 
merchandise is of the 
same type, such as 
fashion apparel

• If there is a great 
variety of 
merchandise, fails to 
provide cues as to 
where one department 
stops and another 
starts

Storage, Receiving, Marketing

Underwear

Dressing Rooms

Checkout counter

Clearance 

Items

Feature

Feature

Jeans       Cas

ual 

W

ear   

    Sto

ckings

Accessories

Pants

To

ps

To

ps

Skirts and Dresses

        Hats

 an

d Handbags

Open Display Window

Open Display Window

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Spine Layout

• Variation of grid, loop and free-form 
layouts

• Based on single main aisle running from 
the front to the back of the store 
(transporting customers in both directions)

• On either side of spine, merchandise 
departments branch off toward the back or 
side walls

• Heavily used by medium-sized specialty 
stores ranging from 2,000 – 10,000 square 
feet

• In fashion stores the spine is often subtly 
offset by a change in floor coloring or 
surface and is not perceived as an aisle

Location of Departments

„

Relative location advantages

„

Impulse products

„

Demand/destination areas

„

Seasonal needs

„

Physical characteristics of merchandise

„

Adjacent departments

Feature Areas

„

The areas within a store designed to get the 
customer’s attention which include:

‰

End caps – displays located at the end of the 
aisles

‰

Promotional aisle/area

‰

Freestanding fixtures

‰

Windows

‰

Walls

‰

Point-of-sale (POS) displays/areas

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Fixture Types

„

Straight Rack – long pipe suspended 

with supports to the floor or attached 

to a wall

„

Gondola – large base with a vertical 

spine or wall fitted with sockets or 

notches into which a variety of 

shelves, peghooks, bins, baskets and 

other hardware can be inserted.

„

Four-way Fixture – two crossbars that 

sit perpendicular to each other on a 

pedestal

„

Round Rack – round fixture that sits 

on pedestal

„

Other common fixtures: tables, large 

bins, flat-based decks

Fixture Types

„

Wall Fixtures

‰

To make store’s wall 
merchandisable, wall usually 
covered with a skin that is fitted 
with vertical columns of 
notches similar to those on a 
gondola, into which a variety of 
hardware can be inserted

‰

Can be merchandised much 
higher than floor fixtures (max 
of 42” on floor for round racks 
on wall can be as high as 72”

Merchandise Display Planning

„

Shelving – flexible, easy to maintain

„

Hanging

„

Pegging – small rods inserted into gondolas or wall systems – can be labor 

intensive to display/maintain but gives neat/orderly appearance

„

Folding – for softlines can be folded and stacked on shelves or tables - creates 

high fashion image

„

Stacking – for large hardlines can be stacked on shelves, base decks of 

gondolas or flats – easy to maintain and gives image of high volume and low 

price

„

Dumping – large quantities of small merchandise can be dumped into baskets or 

bins – highly effective for softlines (socks, wash cloths) or hardlines (batteries, 

candy, grocery products) – creates high volume, low cost image

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Three Psychological Factors to 
Consider in Merchandising Stores

„

Value/fashion image

‰

Trendy, exclusive, pricy vs value-oriented

„

Angles and Sightlines

‰

Customers view store at 45 degree angles from the path they 

travel as they move through the store

‰

Most stores set up at right angles because it’s easier and 

consumes less space

„

Vertical color blocking

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Merchandise should be displayed in vertical bands of color 

wherever possible – will be viewed as rainbow of colors if each 

item displayed vertically by color

‰

Creates strong visual effect that shoppers are exposed to more 

merchandise (which increases sales)

POS Displays

„

Assortment display – open and 

closed assortment

„

Theme-setting display

„

Ensemble display

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Rack display

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Case display

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Cut case

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Dump bin

Visual Merchandising

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The artistic display of merchandise and theatrical props used as

scene-setting decoration in the store

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Several key characteristics

‰

Not associated with shop-able fixture but located as a focal point 

or other area remote from the on-shelf merchandising (and 

perhaps out of the reach of customers)

‰

Use of props and elements in addition to merchandise – visuals 

don’t always include merchandise; may just be interesting display 

of items related to merchandise or to mood retailer wishes to 

create

‰

Visuals should incorporate relevant merchandise to be most 

effective

‰

Retailers should make sure displays don’t create walls that make 

it difficult for shoppers to reach other areas of the store

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StoreFront Design

„

Storefronts must:

‰

Clearly identify the name and general nature of 
the store

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Give some hint as to the merchandise inside

‰

Includes all exterior signage

‰

In many cases includes store windows – an 
advertising medium for the store – window 
displays should be changed often, be fun/exciting, 
and reflect merchandise offered inside

Atmospherics

„

The design of an environment via:

‰

visual communications

‰

lighting

‰

color

‰

sound

‰

scent 

to stimulate customers’ perceptual and emotional responses and 

ultimately influence their purchase behavior

Visual Communications

„

Name, logo and retail identity

„

Institutional signage

„

Directional, departmental and category signage

„

Point-of-Sale (POS) Signage

„

Lifestyle Graphics

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Visual Communications

„

Coordinate signs and graphics with store’s 
image

„

Inform the customer

„

Use signs and graphics as props

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Keep signs and graphics fresh

„

Limit sign copy

„

Use appropriate typefaces on signs

„

Create theatrical effects

Lighting

„

Important but often overlooked element in 
successful store design

‰

Highlight merchandise

‰

Capture a mood

‰

Level of light can make a difference

„

Blockbuster

„

Fashion Departments

Color

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Can influence behavior

‰

Warm colors increase blood pressure, respiratory rate 
and other physiological responses – attract customers 
and gain attention but can also be distracting

‰

Cool colors are relaxing, peaceful, calm and pleasant 
– effective for retailers selling anxiety-causing 
products

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Sound & Scent

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Sound

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Music viewed as valuable marketing tool

‰

Often customized to customer demographics - AIE 
(

http://www.aeimusic.com

)

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Can use volume and tempo for crowd control

„

Scent

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Smell has a large impact on our emotions

‰

Victoria Secret, The Magic Kingdom, The Knot Shop

‰

Can be administered through time release atomizers or via 
fragrance-soaked pellets placed on light fixtures